UPDATE 1-Russia says Ukraine should find money to pay for gas within a week

MOSCOW, Oct 22 (Reuters) - Ukraine should be able to find ways of paying for Russian gas supplies within a week, Russian Energy Minister Alexander Novak said on Wednesday, suggesting a standoff would end once Moscow received financial guarantees from Kiev.

By Katya Golubkova

MOSCOW Oct 22 (Reuters) - Ukraine should be able to find
ways of paying for Russian gas supplies within a week, Russian
Energy Minister Alexander Novak said on Wednesday, suggesting a
standoff would end once Moscow received financial guarantees
from Kiev.

true

The latest round of gas talks between Moscow and Kiev ended
late on Tuesday in Brussels with no agreement in a dispute that
prompted Russia to cut off gas supplies to its neighbour in
mid-June, potentially hurting flows west to the European Union.

But while Novak said he was optimistic for new talks on Oct.
29, Ukrainian Prime Minister Arseny Yatseniuk said he was
sceptical about building ties with Russia, underlining how
efforts to reach a deal are hampered by a wider political
conflict between the two countries.

On Tuesday, Russia increased the pressure on Ukraine, which
is dependent on Western aid, demanding assurances on how Kiev,
would find the money to pay Moscow. Earlier Ukraine asked the
European Union for a further 2 billion euros in credit.

Novak told reporters at an energy conference in Moscow that
the two sides had almost reached a deal but that the talks came
unstuck "by another issue - where will Ukraine get the money to
pay in advance for gas supplies in November and December".

"If the Ukrainians have the money, then the documents will
be signed. If not, then we will wait."

Sergei Kupriyanov, a spokesman for Russian gas exporter
Gazprom told Reuters that gas flows to Ukraine would
be restarted once Kiev received financial aid.

"If Europe gives them the money, then gas will flow," he
said.

In Kiev, Yatseniuk said Kiev was negotiating with its
European partners on re-exporting gas to Ukraine and was not
optimistic about the talks, overshadowed by a pro-Russian
uprising in eastern Ukraine and Russia's annexation of Crimea.

"I am rather sceptical about building relations with Russia,
but will see what happens on the 29th," he told a government
meeting.

Kiev and Moscow have agreed on a price for Russian gas
supplies during the winter at $385 per thousand cubic metres,
but the two sides have stumbled over other issues, including
whether Ukraine should be asked to pay up front.

The deputy head of Ukraine's state energy company Naftogaz.
Serhiy Pereloma, said Ukraine expected to get 5.7 billion cubic
metres of gas in reverse flows from Europe between October and
March. The country needed 26.7 bcm between those two months,
down 24.5 percent from last year, he added.

Those needs Ukraine wants to cover by its own gas production
and gas from storages.
(Reporting by Katya Golubkova; Writing by Elizabeth Piper,
editing by William Hardy)